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About Mike Wellman
Expertise
I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size. I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.

Experience
Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.

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New York Times, Wall Street Journal, Your Money.

Education/Credentials
BBA, Baylor University.

Awards and Honors
IRSOS.com won the Knowledgeweb award for educational excellence for content.

 
   

You are here:  Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > contract labor

Topic: Tax Law (Questions About Taxes)



Expert: Mike Wellman
Date: 1/4/2008
Subject: contract labor

Question
My boyfriend is an employee for this guy and he is full-time but is not taking out taxes and he files a 1099 misc. on him is this illegal or can he do this? thank you for your help..

Answer
Whether he is an employee or an independent contractor is based on individual facts and circumstances. It could be legal or illegal depending on the facts. That said - in most cases, a person should be treated as an employee and taxes should be taken out.

Go here to see the points the IRS uses to determine whether a person is an employee or contractor.

http://www.securetalent.com/resources-legalguidelines.html

To force a determination - have him complete IRS Form SS-8. He will likely be fired though.


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